Question # 1

When the price of a pizza decreased from 1200 Rupees to 1000 Rupees, it is definitely the case that the.

Choose an answer

Income effect means people buy less pizza

Substitution effect means people buy more pizza

Quantity demanded of pizza will not change

None of the above

An economy that falls to realize all of its p9otential gains from specialization is.

Choose an answer

Achieving productive efficiency

Operating outside its production possibilities curve

Operating on its production possibilities curve in an inefficient manner

Operating inside its production possibility curve

As long as the principle of diminishing marginal utility is operating any increased consumption of good.

Choose an answer

Lowers total utility

Produces negative total utility

Lower marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment ceteris paribus, Increases equilibrium income and the budget.

Choose an answer

Remains is balance

Has a surplus

Has a deficit

None of these

Naveed purchases product M for which his income elasticity of demand is negative Apparently product M is.

Choose an answer

A necessity

An independent good

An inferior good

A luxury good

Skills that embodied in a person are called.

Choose an answer

Human capital

Embodied skills

Physical capital

Experience skills

Which skills are most likely to be paid for by the employer.

Choose an answer

General skills

Specific skills

Educational skills

None of these

If the monopolist maximizes profits when marginal revenue equals marginal cost equals average cost economic profits must be.

Choose an answer

Negative

Positive

Zero

Either a or c

"The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by.

Choose an answer

Allen

Marshall

Adam smith

Robert griffin

The "Law of demand" states that other things remaining the same the quantity demanded of any good is.

Choose an answer

Directly related to its price

Positively related to its price

Inversely related to its price

Directly elated to the supply of the good

Price discrimination occurs when

Choose an answer

A commodity has different elasticity in different markets

Same elasticity in different markets

Unitary elasticity different markets

Noe of these

If an increase in the price of gasoline increases the demand for gas hybrid cars, then

Choose an answer

Hybrid cars are an inferior good

Gasoline and hybrid cars are complements in consumption

Gasoline is an inferior good

Gasoline and hybrid cars are substitutes in consumption

If there is no price surprise, total output is.

Choose an answer

50

150

400

200

Economic growth is shown on the production possibility frontier as.

Choose an answer

The curvature of the PPF

An inward shift in the PPF

An outward shifts in the PPF

A movement from one point on the PPF to another

A negatively sloped isoquant implies

Choose an answer

Products with negative marginal utilities

Products with positive marginal utilities

Inputs with negative marginal products

Inputs with positive marginal products

The total utility of the third unit of product x is.

Choose an answer

10

5

23

38

The Lorenz curve shows that

Choose an answer

unemployment does not affect social group

People with low income spend more

People with low income spend less

the degree of income equality in the economy

Disposable income is equal to.

Choose an answer

National income

National income minus taxes plus transfers

Real GDP

National income Minus taxes

When the demand curve is vertical its shows that the demand is.

Choose an answer

Less elastic

Very high elastic

Elastic

Perfectly inelastic

The statement that marginal cost = marginal revenue leads to profit maximization of loss minimization is true.

Choose an answer

All the time

Only in the long run

Only if "marginal cost is rising at the point of equality.

Only if average total cost is falling at the point of equality

Goods which can be consume directly are

Choose an answer

Producer goods

Consumer goods

Free goods

Economics goods

More Classes

Other Links

PPSC Economics Chapter 2 Micro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer